Merck 2014 Annual Report Download - page 242

237CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
The following tables present the contractual cash flows such as
repayments and interest on financial liabilities and derivative
financial instruments with a negative fair value:
Cash flows
< one year
Cash flows
1– 5 years
Cash flows
> 5 years
€ million
as of Dec. 31, 2014
Carrying
amount Interest Repayment Interest Repayment Interest Repayment
Bonds and commercial paper 4,624.2 170.9 1,450.0 442.3 342.1 197.6 2,850.0
Liabilities to banks 267.4 5.1 67.4 2.8 200.0 – –
Liabilities to related parties 501.4 1.6 501.4 – – – –
Loans from third parties and
other financial liabilities 84.5 5.8 18.6 11.8 61.6 – 4.3
Liabilities from derivatives (financial transactions) 153.0 2.5 36.0 63.7 17.3 40.7 –
Financing leasing liabilities 6.5 0.2 2.8 0.2 3.7 – –
5,637.0 186.1 2,076.2 520.8 624.7 238.3 2,854.3
Cash flows
< one year
Cash flows
1– 5 years
Cash flows
> 5 years
€ million
as of Dec. 31, 2013
Carrying
amount Interest Repayment Interest Repayment Interest Repayment
Bonds and commercial paper 3,142.7 127.8 – 333.8 1,722.1 124.5 1,420.0
Liabilities to banks 42.2 4.7 42.2 – – – –
Liabilities to related parties 361.9 0.2 361.9 – – – –
Loans from third parties and
other financial liabilities 84.0 6.0 24.0 11.1 56.0 – 4.0
Liabilities from derivatives (financial transactions) 59.4 2.4 10.0 27.6 9.5 14.7 –
Financing leasing liabilities 7.7 0.4 2.3 0.1 5.0 – 0.4
3,697.9 141.5 440.4 372.6 1,792.6 139.2 1,424.4
Credit risks
The Group is only subject to a relatively low credit risk, meaning
the unexpected loss of payment funds or income. On the one
hand, financial contracts are only entered into with banks and
industrial companies with good credit ratings and on the other
hand, due to the broad-based business structure of the Group,
there is no particularly high concentration of credit risks with
respect to either customers or individual countries. The credit risk
from financial contracts is monitored daily on the basis of rating
information as well as market information on credit default swap
rates. In the case of derivative transactions, credit risk is taken
into account in the fair value determination by means of a dis-
count (so-called credit valuation adjustments and debit valuation
adjustments).
The credit risk with customers is continuously monitored by
analyzing the age structure of trade accounts receivable. The
Group continuously reviews and monitors open positions vis-à-
vis all trading partners in the affected countries and takes risk-
mitigating measures and accounts for impairments as necessary.
On the reporting date, the theoretically maximum default risk
corresponded to the carrying amounts.